Do you want to become a multifamily syndicator but lack the commercial real estate experience? Easy fix.
My previous real estate experience before syndicating my first deal, was absolutely nothing. I had never even bought a house for myself to live in before.
How could I possibly have done that? I cultivated the following four skillsets.
#1 – Trustworthiness
First and foremost, people need to already recognize you as a trustworthy person. If you can’t look yourself in the mirror and say “yeah of course people find me trustworthy,” then forget about raising private money. Why would someone entrust you will thousands of dollars of their own capital if you have a history of untrustworthiness?
#2 – Proven Track Record
Assuming you are already trustworthy, you will need a proven track record. However, this track record doesn’t necessarily have to be real estate related. Having prior real estate experience, whether it’s wholesaling, fix-and-flipping, etc., is a plus but not a requirement. If you don’t have real estate experience, then you must have a proven track record in a professional career.
Now, if you just graduated college, have no real estate experience, and have been working in a corporate job for a few years, you will not be set up for success. Examples of a proven track record in a professional career would be if you had entrepreneurial experiences in college, you bought and sold a company, you started your own company, or you’ve held high-level responsibilities at a corporate job.
Experiences like that would be compelling to private money investors. It shows that you have the business foundation required to handle managing other people’s money.
Ideally, you would have a combination of the two, but either-or would suffice.
And don’t forget, you can always partner up with someone that does have the track record, and the expertise to raise money, so that you can begin creating that track record for yourself.
#3 – Resourcefulness
Another skillset is being incredibly resourceful.
In order to tackle a multifamily syndication, you NEED other people. Having those other resources is the only possible way you’ll be able to create that generational wealth that you want.
I believe we have to be resourceful as multifamily syndicators because challenges will come up and there’s not necessarily a roadmap for how to complete a deal from start to finish. Therefore, resourcefulness is a must.
#4 – Understand the Numbers and Terms
Finally, you’ve got to know how to run the numbers and understand how to analyze deals. You don’t need to have 10 or more years of experience analyzing deals because you can partner with someone who has that experience. However, you still need to have a basic understanding of how the numbers work and of the multifamily lingo. The last thing you want to have happen is to be speaking with a private money investor who asks about terms like gross rent multipliers or internal rates of returns and you have no clue what they are talking about.